can you explaint more about question 2?

Capital Hotels and Restaurants Incorporated recently hired a new accounting clerk. She has compiled the following information to prepare the statement of cash flows for the year ended December 31 , 2020. - Net income for the year was $114,140. - Depreciation expense was $15,300. - Equipment was sold for a gain of $16,000. Cash proceeds from the sale were $36,000. - Equipment was purchased for $250,000. - Dividends of $50,000 were paid. - Accounts receivable increased by $31,400. - Inventory decreased by $38,700. - Accounts payable increased by $41,100. - Notes payable increased by $55,000. - Shares were sold for $50,000. - Cash balance on January 1, 2020, was $114,800. - Cash balance on December 31, 2020, was $117,640. The statement of cash flows the accounting clerk prepared is shown below. Capital Hotels and Restaurants IncorporatedStatement of Cash Flows For the Year Ended December 31, 2020 Cash Flow from Operating Activities Net Income Adjustments for Non-Cash Items Depreciation Expense Changes in Current Assets and Current Liabilities Increase in Accounts Receivable Decrease in Inventory Increase in Accounts Payable Sale of Equipment Purchase of Equipment Net Cash Provided (Used) by Operating Activities Cash Flow from Investing Activities Proceeds from Notes Payable Net Cash Provided (Used) by Investing Activities Cash Flow from Financing Activities Proceeds from Issue of Common Shares Payment of Cash Dividend Net Cash Provided (Used) by Financing Activities Net Increase (Decrease) in Cash $114,140 15,300 31,400 (38,700) 41,100 36,000 (250,000) ($50,760 55,000 55,000 50,000 (50,000) 0 4.240 HOSP 2810 MANAGEMENT ACCOUNTING Required a) Identify the problems with the statement of cash flows that the accounting clerk prepared. b) Prepare a corrected statement of cash flows